Dollar Consolidates at $99.00 Amid Buyback News and Iran Sanctions

The US Dollar has stabilized around $99.00 after the US Treasury expanded its long-end bond buybacks, according to DBS Group Research economist Chang Wei Liang.

Liang notes that despite a modest recovery in long-end US Treasury yields, tweaks to buybacks have only a small and temporary impact on markets without any meaningful change to the US fiscal trajectory.

In fact, he warns that an expected tightening of US sanctions on Iran could have unintended consequences, including increased inflation expectations, rising US yields, and higher Dollar values.